THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(COMMERCIAL BREAK)

ANDERSON COOPER, CNN ANCHOR: Welcome to a "Special Edition of 360" with President Obama continuing his swing through Europe making history on the continent, up close with ordinary people at a remarkable town hall meeting in France. And prior to that face to face with global leaders of the G-20 Economic Summit here in London.

President Obama's two challenges: restoring American leadership and leading the world out of the mess we're in, which is why we're calling this SPECIAL EDITION of 360, "President Obama and the New World Promise."

It came into focus at the G-20 Summit, Mr. Obama working the room, working the leaders trying to reconnect America to the world, even making peace at one moment with China and France during the negotiations.

It also played out on the streets. Protesters, some of them violent, with a basket full of grievances but no longer a president to serve as a focal point for their rage.

It blossomed at Buckingham Palace where a spontaneous gesture of affection between Michelle Obama and the queen captured headlines.

And at a school not far from here it captured young girls' hearts, and sparked their imaginations; their new world promise and President Obama's now connected in history.

We begin with President Obama's first stop after London -- Strasbourg, France. Mr. Obama has said it is a priority to change the way America is viewed in the world and at a remarkably intimate and personal appearance at a town hall meeting in Strasbourg he seemed to be doing just that, one person at a time.

He started by addressing the crowd about the economic crisis.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The reckless speculation of bankers that has now fueled a global economic downturn that's inflicting pain on workers and families is happening everywhere, all across the globe.

Now, there's plenty of blame to go around for what has happened. And the United States certainly shares blame for what has happened. But every nation bears responsibility for what lies ahead, especially now. For whether it's the recession or climate change or terrorism or drug trafficking, poverty or the proliferation of nuclear weapons, we have learned without a doubt there's no corner of the globe that can wall itself off from the threats of the 21st century.

In recent years we have allowed our alliance to drift. I know that there have been honest disagreements over policy, but we also know that there's something more that has crept into our relationships.

In America, there's a failure to appreciate Europe's leading role in the world. Instead of celebrating your dynamic union and seeking to partner with you to meet common challenges, there have been times where America's shown arrogance and been dismissive even derisive. But in Europe, there is an anti-Americanism that is at once casual but can also be insidious. We must forge common solutions to our common problems.

So let me say this as clearly as I can. America is changing. But it cannot be America alone that changes. As we take these steps, we also affirm that we must not erect new barriers to commerce. The trade wars have no victors.

UNIDENTIFIED FEMALE: And first of all I wanted to tell you that your name in Hungarian means peach.

B. OBAMA: Peach.

UNIDENTIFIED FEMALE: Yes.

B. OBAMA: Ok, well how about that I did not know that.

UNIDENTIFIED FEMALE: Yes, now you know it. And we wanted to know if you -- did you ever regret to have run for presidency until now?

B. OBAMA: You know, there have been times certainly during the campaign and there have been times over the last several months where you feel a lot of weight on your shoulders. You also lose privacy and autonomy -- or anonymity.

But having said all that, I truly believe that there's nothing more noble than public service.

(END VIDEOTAPE)

COOPER: President Obama at a town hall meeting in Strasbourg, France.

Let's "Dig Deeper" now on the broad view of his trip with our own Richard Quest.

How do you think the President is doing in the world stage, really his first meeting with all of these world leaders?

RICHARD QUEST, CORRESPONDENT, CNN INTERNATIONAL: There is absolutely no doubt that he gets A all around for the way he is wooing the crowds. Whether it's Nicolas Sarkozy of France who was predisposed to walk out of the G-20 or somebody more grumpy like Gordon Brown or Angela Merkel who was against his policy of wanting more fiscal stimulus, and yet today, Anderson, we saw them all together at the NATO Summit getting ready in circle.

We saw them all coming together and actually being extremely friendly again. He is the star of the moment. And he's getting on, he's wooing and he's making friends.

COOPER: And what has he actually accomplished in the last several days?

QUEST: It's tempting to say almost nothing, and it's tempting to say everything. The truth of it and it's an unpalatable truth perhaps and an uncomfortable one is that he's not George Bush and he's not going around the world haranguing other countries. Time and again, he has said he's here to listen and he's here to restore America's perspective and policies in the rest of the world.

Now there was one moment today, at that town hall meeting, which incidentally, you and I need to be very careful about because frankly he did a superb job of anchoring that town hall meeting. As almost like a television presenter the way he was being -- he was walking around.

COOPER: Do you think he might be gunning for your job?

QUEST: Well, let's put it as I was impressed and so was the audience.

COOPER: Yes.

QUEST: But there was a particular moment when he said, he went through the problems of how Americans view Europeans view Americans and Americans view Europeans. And it was honest. He told it as it was.

Now, I'm starting to sound like a cheerleader for Mr. Obama which of course, is not my job in any shape or form. But the reality is for Europeans who have looked at the United States for a long time as being told what to do, now they find they've got an ally, and not somebody dictating.

COOPER: There has been finger pointing and mostly before in the run- up to the G-20 meeting, some international leaders, finger pointing the United States as the cause of the financial crisis.

I talked to Treasury Secretary Tim Geithner about this whether America should apologize in a way. Here's what he says.

(BEGIN VIDEO CLIP)

TIMOTHY GEITHNER, TREASURY SECRETARY: I believe the U.S. bears some responsibility for this but responsibility goes around. And I think all countries were sort of overwhelmed by the force of gap of global capitalism.

Our challenge now though, is to make sure we're moving with the rest of the world -- to pull the world towards higher standards. We want to see a race to the top rather than a race to the bottom. And we need them to come with us if we're going to be effective in striking (ph) our system.

(END VIDEO CLIP)

COOPER: It seems that part of the success of President Obama has been moving a lot of these European leaders who were pointing fingers to kind of moving them beyond that.

QUEST: But to move them beyond that, he had to first of all accept that there was some blame and responsibility and that's the significance of what Tim Geithner said to you.

He said yes, it was our fault but not all our fault. Yes we take part of the blame, but not all of the blame. Yes, we're going to do something and that's so important because what the rest of the world says is it did start in the U.S. sub-prime mortgage crisis, it was the U.S. derivatives markets. Yes, we all pull our pets (ph) along those flames, but who lit the flames in the first place?

COOPER: We'll have more with Richard throughout the hour, and we have a lot more to cover in this hour starting with a closer look at President Obama's public outreach, trying to re-brand America.

(END VIDEOTAPE) COOPER: Some of the personal touch. We'll also look at the concrete examples of what Mr. Obama gained and what he gave up for the G-20 Summit. Did the United States get what they wanted?

Later the battle on London streets, people venting their rage at banks, at America and a range of other targets facing an army of police and a very different American President than the last one. Did that though make any kind of a difference?

Also Michelle Obama's connection with everyday people and how she is capturing the world's imagination and one school girl crush at a time when our SPECIAL 360 continues from London.

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COOPER: We're talking about President Obama and the idea of a new world promise, redeeming it is part substance, Mr. Obama and Russia's President agreeing to negotiate nuclear cuts for instance, and part perception, trying to change the way the world sees the President, whether behind the scenes or in front of the cameras.

Here's more of the second part of Mr. Obama's town hall meeting in Strasbourg, France.

(BEGIN VIDEOTAPE)

B. OBAMA: Now, I have come to Europe this week to renew our partnership one in which America listens and learns from our friends and allies, but where our friends and allies bear their share of the burden. And as we restore our common prosperity, we must stand up for our common security.

The United States of America did not choose to fight a war in Afghanistan. We were attacked by an Al Qaeda network that killed thousands on American soil, including French and Germans.

Along the border of Afghanistan and Pakistan, those terrorists are still plotting today. And if there is another Al Qaeda attack, it is just as likely if not more that it will be here in Europe.

I've sent a clear message to the leaders and peoples of Iran that while we have real differences, we also have mutual interests and we seek new engagement based on mutual respect.

Our moral authority is derived from the fact that generations of our citizens have fought and bled to uphold these values in our nations and others. And that's why we can never sacrifice them for expedience's sake.

That's why I have ordered the closing of the detention center in Guantanamo Bay. That's why I can stand here today and say without equivocation or exception that the United States of America does not and will not torture.

UNIDENTIFIED MALE: I just want to know, what do you expect from the French and the European countries regarding the war on terror? B. OBAMA: After the initial NATO engagement in Afghanistan, we got sidetracked by Iraq. And we have not fully recovered that initial insight that we have a mutual interest in ensuring that organizations like Al Qaeda cannot operate.

And I think that it is important for Europe to understand that even though I'm now president and George Bush is no longer president, Al Qaeda is still a threat and that we cannot pretend somehow that because Barack Hussein Obama got elected as president, suddenly everything is going to be ok.

(END VIDEOTAPE)

COOPER: President Obama trying to change minds and win new friends. He's already done quite a bit on the Russian front in London; he seemed to avert a tantrum from the French building the momentum for his visit to the French and German border.

We have that angle from Ed Henry.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice over): President Obama's European tour is starting to look like the campaign, energized crowds in France and Germany.

"Yes, we can" signs, even a town hall meeting with local students, the kind that gave him the edge in the Presidential race.

B. OBAMA: There have been times where America has shown arrogance and been dismissive, even derisive. But in Europe, there is an anti- Americanism that is at once casual but can also be insidious. America is changing. But it cannot be America alone that changes.

HENRY: The change message is getting refashioned for NATO as he tries to sell allies on sharing responsibility for Afghanistan.

B. OBAMA: France recognizes that having Al Qaeda operate safe havens that can be used to launch attacks is a threat and not just to the United States, but to Europe.

HENRY: While President Nicolas Sarkozy will not put more troops on the ground, he's willing to train Afghan police and provide development money.

(On camera) I wonder what you say to the President's message about bringing troops forward, maybe military training, helping in Afghanistan?

NICOLAS SARKOZY, PRESIDENT OF FRANCE (through translator): We totally endorse and support America's new strategy in Afghanistan.

HENRY (voice over): Eager support from someone who just days ago was at odds with Mr. Obama over the financial crisis.

SARKOZY: It feels really good to be able to work with a U.S. president who wants to change the world.

HENRY: It seems they've quickly patched up differences from the G-20 Summit where Mr. Obama didn't get all he wanted but was building relationships for the future.

(On camera) And now Mr. Obama's close ally from the G-20 Summit, British Prime Minister Gordon Brown is suggesting he's ready to send more troops to Afghanistan; a sign the strategy maybe starting to pay off.

Ed Henry, CNN, Strasbourg, France.

(END VIDEOTAPE)

COOPER: More on the Obamas introduction to the people of Great Britain, including their visit with the Queen, the gifts they exchanged, the impression they made and the moments being talked about around the world.

And later, Mrs. Obama's heart-warming visit to a local girl's school and her uplifting message about what young women can do if they try.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: I am reminded and convinced that all of you in this school are very important parts of closing that gap. You are the women who will build the world as it should be. You're going to write the next chapter in history not just for yourselves, but for your generation and generations to come.

(END VIDEO CLIP)

COOPER: Also ahead, the other summit, what the first spouses were up to while the big cheeses met behind closed doors.

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COOPER: There was one event that President Obama singled out as a personal highlight, something he was looking forward to.

(BEGIN VIDEO CLIP)

B. OBAMA: There's one last thing that I should mention that I love about Great Britain and that is the Queen. And so I'm very much looking forward to -- I'm very much looking forward to meeting her.

(END VIDEO CLIP)

COOPER: A few hours later, the President and Michelle Obama were in Buckingham Palace face to face with Queen Elizabeth. The meeting also created some surprises -- a gesture of intimacy rarely seen about the queen. We'll talk about that in the moment.

But first we begin with the royal greeting.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: The President of the United States of America and Mrs. Obama.

B. OBAMA: Your majesty, thank you so much for having us.

COOPER: The President's and first lady's meeting with the Queen began with hand shakes all around, a strong start in the high stakes game of royal etiquette.

JACQUELINE WHITMORE, IMAGE & ETIQUETTE CONSULTANT: They gave them both a two-handed hand shake, which is usually called the glove and that's reserved for people you know extremely well.

COOPER: The President battling a cold, kept things respectful but used a bit of Obama humor to break the ice, cracking a joke about his jet lag.

B. OBAMA: I had meetings with the Chinese, the Russians, and I'm proud to say I did not nod off in any of those meetings.

COOPER: Another potential mine field the royal gift. The Queen and Prince Phillip gave the Obama's an autographed picture of themselves. The Obamas tossed tradition aside and gave the queen a video IPod loaded with footage from her 2007 visit to the U.S. as well as Broadway tunes with fitting titles.

COOPER: She's met with ten of the last 11 Presidents and although known for being formal and proper, she's also let her hair down. Riding horses with Ronald Reagan, dancing with Gerald Ford and using some of her own royal humor to put Mrs. Ford at ease.

CARL SFERRAZZA ANTHONY, PRESIDENTIAL HISTORIAN: She was in the elevator with the President and Mrs. Ford when the Fords' son Jack ran in and wasn't quite done up in his tuxedo and the Queen looked at Mrs. Ford and said, I've got one just like him at home.

COOPER: As for today's royal meet and greet, the Queen seemed in good spirits but even the photo-op could have been a deal breaker.

WHITMORE: I also noticed that when the Obamas posed for a picture with the Queen and Prince Phillip, that they didn't touch one another. And that is also quite appropriate. You never touch the queen in a photograph.

COOPER: Another day, another meeting, another test passed in the subtle world of international diplomacy.

(END VIDEOTAPE) COOPER: After the initial meeting there was a reception and that hug seen around the world. Here it is, Michelle Obama and Queen Elizabeth in a sort of a quick embrace, some wondered aloud if the first lady had been too informal touching the Queen but is not clear who exactly made the first move.

Buckingham Palace actually sent out a press release about it. They said, "It was a mutual and spontaneous display of affection and appreciation between the queen and Michelle Obama. The London Summit reception at Buckingham Palace was an informal occasion."

Let's see what our own Richard Quest thinks. Much ado about nothing?

QUEST: It was a breach of protocol. It was the sort of things that hasn't happened in decades. It was an event that has had everybody talking and it meant absolutely nothing.

There are all sorts of reasons why it took place, not least of which I think that the Obamas just were more informal about the way they do things. But did it bother her Majesty the Queen? Not a bit of it.

She was far more annoyed with Silvio Berlusconi, the Italian Prime Minister when he today or at the same even was shouting, Mr. Obama, Mr. Obama, and the queen turned around and said, do you have to shout?

COOPER: Really?

QUEST: It's on YouTube, it's one of the most watched YouTube videos at the moment. That sort of thing annoys the queen.

COOPER: Shouting in her ear?

QUEST: Well, she gets testy. She's in her 80's.

COOPER: When the Corgis bark too much?

QUEST: No, listen, she'd sell the lot of them those Corgis. Those Corgis, I mean, there's a number of people who will report that they have been bitten by the Corgis and the queen shows sympathy to the dogs.

The truth of this story is, I think we're in a new environment and one of the problems seems to be is that today's leaders don't go for the same rules. I'll give you an example.

When President Obama and Mrs. Obama walk into a room, who goes first?

COOPER: You know, I don't know.

QUEST: Usually the President lets his wife go first. But that of course is against protocol. He should always go first. So you end up with these situations where the queen is expecting one set of rules, other people are expecting another set of rules.

Remember, the queen's husband hasn't walked next to her for the last 60 years. COOPER: Really?

QUEST: He's been five paces behind.

COOPER: Still, really?

QUEST: Yes. She's only just started saying Prince Phillip instead of my husband and I.

COOPER: Really?

QUEST: Which of course, gave rise to this wonderful phrase, because of the present, the gift that President Obama gave to the queen.

COOPER: The iPod?

QUEST: The iPod.

COOPER: And that's what the...

QUEST: The iPod.

COOPER: The iPod.

QUEST: My husband and iPod.

COOPER: Do you think she actually is going to listen to that iPod?

QUEST: Well, it's got a selection of President Obama's speeches, it's got some show tunes on it and it's got some video of her last trip to the United States.

I suspect we'll never know whether actually on that iPod is also the video of George Bush winking at her and saying she's giving me a look that only a mother could. And telling her majesty that she last visited in 1776.

COOPER: Right.

QUEST: The truth is the royals and the Americans get on very well, as long as there's nobody else there to witness it.

COOPER: All right, I'll have more with Richard later on.

Up next, the anger in the streets, about as far away from the queen as you can get. The protesters smashing windows, the police working to keep the world leaders safe and Londoners caught in the middle trying to get around. We'll take you "Up Close."

And later, the remarkable reception that Michelle Obama got at a London girl school; the First Lady meeting some young fans and sharing an inspirational message.

(BEGIN VIDEO CLIP)

M. OBAMA: I want you to know that we have very much in common for nothing in my life's path would have predicted that I'd be standing here as the first African-American first lady of the United States of America. There was nothing in my story that would land me here.

(END VIDEO CLIP)

COOPER: There were a lot of tears in that room. We'll have more in that tonight.

And also the images you may have missed this week, we take you behind the scenes when this SPECIAL 360 from London continues.

(COMMERCIAL BREAK)

ERICA HILL, CNN CORRESPONDENT: I'm Erica Hill. Our 360 SPECIAL continues in a moment. But first this "360 Bulletin."

Good news on Wall Street as stocks gained for a fourth straight week. In fact it's the best four-week run in nearly 80 years. Despite a dismal March jobs report, the Dow managed to close up 40 points today. Both the Nasdaq and the S&P also posting gains.

In an effort to pare down the Pentagon's 2010 budget, Defense Secretary Robert Gates now expected to announce on Monday the cancellation of several weapons programs which could mean thousands more job cuts.

More bailout bonuses, this time coming courtesy of Fanny Mae and Freddie Mac; the embattled mortgage giants paying $210 million in retention awards including payments of at least $1 million each to four top execs.

And actress and Twitter fan Demi Moore -- she got scared today when an unknown woman sent her a message threatening suicide. Other Twitter followers tracked that message to a home in San Jose where police found the woman unharmed but in need of help.

Those are your headlines at this hour, I'm Erica Hill.

Back to our 360 SPECIAL after this.

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(BEGIN VIDEOTAPE)

COOPER: What do you think about these protesters?

ANDY KING, LONDON BANKER: I suppose they've got a right to protest, which is fine. But in regards to disrupting the -- what's going on in the city, it's caused me a few problems getting to work the last couple of days.

COOPER: Did you think twice about wearing a nice suit?

KING: When I saw it in the morning, yes, I did. And my employer did actually recommend that we dress down for at least a couple of days, but at the end of the day, you know, if something's going to happen, it could happen regardless if you're wearing a suit or not.

(END VIDEO CLIP)

COOPER: Well, protesters are leaving their mark during President Obama's trip. You see some of it here outside Britain's Central Bank and Royal Bank of Scotland. Hundreds of demonstrators filling the streets, clashing with police trying to disrupt the G-20 summit; using their voices and their fists to send Mr. Obama and world leaders a message.

Nic Robertson has more.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice over): They came, they chanted, they were cornered, or cattled (ph) as it's known here. Protesters penned in by police and pounced upon at any hint of aggression.

The tough tactics, successfully keeping a lid on protests which the police feared terrorists might exploit to attack the U.S. President.

UNIDENTIFIED MALE: The potent terrorist threat is there with all the world leaders here in one place in the capital, so our plan has always been far more wide ranging than the recent protests.

ROBERTSON: At the peak of the violence, protesters smashed their way into a bank at the heart of London's financial district.

But they never got close to the Obamas. This particular street battle several miles from Buckingham Palace were at roughly the same time the first lady and the queen were having their much talked about encounter.

Outside the G-20 headquarters in the Excel Center, protests were peaceful and causes plentiful.

UNIDENTIFIED MALE: Stop the genocide in Tibet.

UNIDENTIFIED MALE: My message is to stop police brutality.

UNIDENTIFIED MALE: We need change in Congo.

UNIDENTIFIED MALE: We need those people to end -- the polar bears are dying and that is wrong. So we're saying, if you want to save the polar bears you have to save the environment.

ROBERTSON: They were Somalis, Ethiopians, Eritreans, young socialists as well, all trying to get heard, some even tried borrowing Obama's own message.

But they stole none of his G-20 thunder.

(On camera) The protesters here can shout all they want but the reality is they're not going to be heard by the delegates in the Excel Center. It's right out there at the end of the road. And even when they do come racing out in their motorcades they'll come past here so quickly, they're barely going to see the protesters.

(Voice over) As President Obama continues his European tour, cattling is becoming a new buzz word; the debate over its use growing.

UNIDENTIFIED FEMALE: Either they frighten people off from coming again and also people who have seen it in the media or the press will be frightened of such things. And we have a right to protest.

ROBERTSON: For the police, the Prime Minister and President Obama, the G-20 will likely be remembered as mostly an uninterrupted success.

Nic Robertson, CNN, London.

(END VIDEOTAPE)

COOPER: The protesters were loud, many were violent, but they did not stop the G-20 Summit. And the question is was it all a success?

Richard Quest joins us again. Overall certainly, the White House seems pleased with it. Most world leaders seem to have left relatively pleased with it. Will anything actually though change?

QUEST: Yes, a lot will change, both in the short-term and in the long-term. Remember when they met back in November, the Bush administration was on the way out, it was difficult to get a consensus, they knew the situation was getting worse.

Now they've got a consensus, albeit not perfect, but they have got a plan, it's a long-term plan and they're now going to start putting it to use.

COOPER: We saw Michelle Obama earlier. It was interesting to see the public's reaction to her in London and also the media's reaction to her in London. There was a lot of -- people went over -- I don't know -- mania is probably too strong a word.

QUEST: No. No, that's exactly the word. We didn't have Beatles- style mania, people on the streets and swooning in theaters. No, not yet.

But look at this newspaper here. I'll show it to you first. This is a newspaper, "The Daily Telegraph," a very conservative newspaper. But look at that, their main story, of course, is about the G-20, "The Fightback Starts Here."

But the real story they want you to see is this one.

COOPER: That's the one that will sell the paper?

QUEST: Yes, that's going to sell the paper.

Notice he's not there. Gordon Brown's certainly not there. The G-20 glum lot, they wouldn't make it up here.

COOPER: The glum lot?

QUEST: Well, I mean, you know, the glum lot.

This has been an extraordinary event, for those of us that get excited by summits and by economics; you don't see these very often. I can't remember ever having like this in my career.

But what you do see is a determination. Will they get to it? And that's fascinating because what President Obama basically said yesterday at his main press conference in London is there are no guarantees; that they're just going to hope it's going to work.

COOPER: And in terms of concrete things. I mean more money for the IMF...

QUEST: Yes.

COOPER: Why does that matter to America?

QUEST: Because the moment some country start going bust, they won't be able to buy American exports. The moment some country starts going broke, the whole thing unravels. That's why it's important.

COOPER: So IMF has money that goes to developing nations...

QUEST: Absolutely. It will go to -- it will go to some countries in Europe as well. It goes to Mexico, Mexico has just gone to the IMF and asking for a thumping great big loan.

There are countries around the world that can't pay their bills; that they can't service their sovereign debt. It's no different than you and me not being able to pay off credit cards. Countries can't do it, the IMF has now been given the money to help them do it.

COOPER: And there's going to be all these calls for greater regulation internationally.

QUEST: Well, (INAUDIBLE). There is call for greater regulation. The U.S. says it's not a global regulator. The Europeans seem to think it maybe is more of an "overarching" regulator.

I think a slippery slope has been launched on that issue. But the fact is everybody accepts that whatever went wrong, the horrors of capitalism circa 1990-2000 cannot be allowed to go into the rest of this century.

The only problem of all of this is we have the dotcom boom and bust, now we have had the subprime boom and bust, then we had the derivatives boom and bust. If they can put those right, they don't know what's coming next.

Richard Quest, appreciate it. And thanks for all your help all week long.

QUEST: Richardquest; come on. I need these people following. Rick Sanchez is a long way ahead.

COOPER: I know. Are you trying to beat Rick Sanchez -- what is it? It's just Richardquest?

QUEST: Just Richardquest, one word.

COOPER: at -- just Richardquest.

QUEST: No, just Richardquest -- you really are behind the times.

COOPER: I tweet, I just don't know how to...

QUEST: Look, if you're not careful, someone will have to buy you an iPod.

COOPER: All right. Richard thanks.

So who won and who lost in the G-20 Summit? That's ahead.

And Michelle Obama's visit to that young girl's school who welcomed the first lady and she certainly returned the love. Take a look.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: When I look at a performance like this, it just reminds me that there are diamonds like this all over the world. All of you are jewels, you are precious and you touch my heart.

And it is important for the world to know that there are wonderful girls like you all over the world.

(END VIDEO CLIP)

COOPER: Michelle Obama, also stepping out with the wives of other world leaders attending a star studded dinner. All the details when 360 continues.

(COMMERCIAL BREAK)

COOPER: From the queen to the fashion press and on down, Europeans are embracing, certainly Michelle Obama. The first lady visited an all-girls school, where she let the students in on a secret.

(BEGIN VIDEO CLIP)

M. OBAMA: You know what, my husband, you know him?

STUDENT: Yes.

M. OBAMA: He's going to be very jealousy of my afternoon because I'm spending it with all of you. He's meeting with important people. But it's not as much fun as being here. I am just delighted.

(END VIDEO CLIP) COOPER: Even before arriving in London, Mrs. Obama had gained an edge on her husband in this Gallup poll. The president getting a favorable rating, 69 percent which is certainly high; the first lady's was 72 percent.

Michelle Obama just as popular overseas. People seem to respond to her warmth or candor; from the queen to the young girls she met.

Here's Randi Kaye.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT: Lost in a sea of screaming students is first lady, Michelle Obama. That's her bending down on the stage, mobbed by students trying to touch her and talk to her as if she's a rock star from the U.S. Secret service stand over her, but these girls get what they came for.

More than 200 students from London's Elizabeth Garrett Anderson School waited anxiously for Mrs. Obama. They performed for her upon arrival. She was visibly touched by their excitement.

M. OBAMA: There are diamonds like this all over the world. All of you are jewels. You are precious and you touch my heart. And it is important for the world to know that there are wonderful girls like you all over the world, all over the world.

KAYE: The first lady so filled with emotion it seemed, she quickly turned to prepared remarks. Her message: strength and determination; compassion and confidence.

M. OBAMA: My brother and I were raised with all that you really need: love, strong values, and the belief that with a good education and a whole lot of hard work, that there was nothing that we could not do.

KAYE: Mrs. Obama's audience seemed to hang on her every word mesmerized by her tales from Chicago's Southside, her middle class upbringing.

M. OBAMA: Nothing in my life's path would have predicted that I would be standing here as the first African-American first lady of the United States of America. There was nothing in my story that would land me here.

I wasn't raised with wealth or resources or any social standing to speak of.

KAYE (on camera): She spoke of teachers and her own mother who taught her about quiet strength, dignity and integrity. She told the students they too can control their own destiny.

M. OBAMA: I loved getting A's. I liked being smart. I liked being on time. I like getting my work done. I thought being smart was cooler than anything in the world. And you too with these same values can control your own destiny.

KAYE (voice over): From Mrs. Obama, the students at this all-girls school got a lesson in girl power.

M. OBAMA: You are the women who will build the world as it should be. You are going to write the next chapter in history.

KAYE: Her final word to the girls, "We are counting on you." With that, she turned to leave, but not before more hugs and more screams.

Randi Kaye, CNN, New York.

(END VIDEOTAPE)

COOPER: Well, if you're a power spouse like Michelle Obama, the summit is a marathon of niceties and net working. Mrs. Obama's spending a fair amount of time getting to know the other first wives at the summit. Here's the group photo taken at the dinner hosted by British Prime Minister Gordon Brown and his wife, Sarah. But there's more to these meetings than just symbolism. Membership in the first wives club is in some ways a powerful card to have.

Erica Hill has more on that.

(BEGIN VIDEOTAPE)

HILL: The first image of the Obamas in Europe, quickly making a splash across the U.K. Wednesday morning while the first couple was already on to the next photo op at Number 10 Downing Street.

The president and Mrs. Obama starting their day at the prime minister's residence where the men talked shop and ladies shared a quick chat before headed out to Maggie's Cancer Care Center where they celebrated the facility's first anniversary.

A few hours later, after a brief visit with the queen, the Obamas were back with the Browns.

He, for a working dinner with the G-20 heads of states, she, for what's being labeled the First Wives' Club dinner, a powerful group of spouses that could ultimately be a major asset to the first lady and her agenda.

CARL SFERRAZZA ANTHONY, FIRST LADIES LIBRARY HISTORIAN: Sometimes there are issues that are global that have no boundaries and it's often the sort of interesting groups of first ladies, almost an old- girl network that you oftentimes see forming where first ladies will work together from different countries to combat a problem.

HILL: Mrs. Obama could find an ally in some of the non-political guests. Well-known British women invited by Mrs. Brown including Harry Potter author, J.K. Rowling. The president is a big fan of the Boy Wizard. And two-time Olympic gold medalist, Dame Kelly Holmes. Mrs. Obama was seated between the two.

Jamie Oliver, the so-called "Naked Chef" prepared the menu. One report said the Food Network star would have to surrender his phone upon arrival for security reasons, which makes Naomi Campbell's invitation all the more interesting. The supermodel, known as throwing her cell phone at an assistant, as for her time on the catwalk, seen here leaving.

One former model not in attendance? Carla Bruni Sarkozy. Charmed the Brits last year with her demure curtsey to the queen but gave plenty of advance warning she wouldn't be in London this week.

TINA BROWN, FOUNDER, THEDAILYBEAST.COM: I think she recognizes that next to Michelle, she's going to be badly compared because she'll suddenly seem like a very high-style, very vogue kind of girl, whereas Michelle's points right now in the middle of this terrible recession is, "I'm real, I'm authentic, I'm bright."

HILL: And on her first full day overseas it seems to be working.

Erica Hill, CNN, New York.

(END VIDEOTAPE)

COOPER: Still to come from London, what the summit actually accomplished. What President Obama wanted versus what the U.S. got.

And the sights and sounds of his remarkable global debut from the beginning when our SPECIAL 360 continues.

(COMMERCIAL BREAK)

COOPER: So is $1 trillion bailout what the world economy needs? President Obama and members of the G-20 thinks that cash infusion is going to bring the global crisis one step closer to an end. The summit ended with a historic pledge to fix an unprecedented crisis but who actually got the best deal.

We talked about it a little bit. Tom Foreman has a look at winners and losers.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT: Anderson, let's break down the results of this conference by category.

We start with stimulating the economy. The losers, well, that's President Obama and British Prime Minister Gordon Brown. They wanted a big agreement for much more stimulus spending in the big economy countries. They didn't get it.

But the were also the winners because they did help convince the collective nations to loan $1 trillion to prop up financial institutions in many poorer countries, possibly keeping the economic crisis from getting worse.

Let's turn over here to regulation. The losers: nations like France and Germany which wanted a strong international regulator to police the financial world. The U.S. beat that idea down.

The winners? Tax collectors. Proponents of cracking down on secretive tax havens like the Cayman Islands. The G-20 nations will now turn up the heat on some places if they're helping people evade legitimate taxes.

In the area of influence. The losers, the western powers. Yes, we're still the big dogs but China and other Asian nations really came on hard this time. They had such hard-charging economies it became clear that they also have a lot of new clout.

As for the G-20 meeting overall the losers, well, the protesters and the critics who either wanted or predicted a meltdown. The winners, those world leaders including President Obama who managed to fashion at least a modest agreement despite some pronounced differences of opinion -- Anderson.

COOPER: Some of the give and take at the summit; that certainly will not solve all the world's problems. But one the leaders hope is a step in the right direction.

That was the fear. There was fear; French walkout, an American gaffe, or something unforeseen that would turn a bad situation word. Instead Low key diplomacy seems to have triumphed in keeping with the low-key president, high public profile and all.

As we are all learning that is not a contradiction with Mr. Obama; both qualities on display throughout his trip.

Here's a look from the beginning.

(BEGIN VIDEOTAPE)

GORDON BROWN, PRIME MINISTER OF GREAT BRITAIN: The whole of United Kingdom welcomes President Obama and the first lady on your first official visit to our country.

B. OBAMA: All of us here in London have a responsibility to act with a sense of urgency and every nation that will be participating has been affected by a crisis that's cost us so much.

UNIDENTIFIED MALE: I'm ready now. I want to go out to work. I don't want to keep taking money up.

M. OBAMA: When I look at a performance like this, it just reminds me that there are diamonds like this all over the world. All of you are jewels. You are precious and you touch my heart.

B. OBAMA: It's hard for 20 heads of state to bridge their differences. We've all got our own national policies. We all have our own assumptions, our own political cultures but our citizens are all hurting. They all need us to come together.

It is a great honor for me to be here in Europe.

I'm very proud of the work that was done in London.

All right? Thank you, everybody.

(END VIDEOTAPE) COOPER: That does it for this SPECIAL 360. As always, let us know what you think at ac360.com. Our thanks to CNN's London bureau for their hospitality and know how.